Fisker, Inc. (NYSE:FSR) shares are advancing Tuesday following a product update from the company.
What Happened: EV maker Fisker has begun accepting reservations for its second product – the Fisker PEAR, the Los Angeles-based company said in a statement.
Fisker is collaborating with Apple, Inc. (NASDAQ:AAPL) supplier Hon Hai Precision Industry Co., Ltd. (OTC:HNHPF) to manufacture PEAR. The company touted the newest model in its line up as a "digitally connected, compact, five-passenger urban EV."
Fisker said the PEAR will have a starting price of $29,900 for U.S. customers before taxes and incentives. Consumers can pay $250 for a first reservation and $100 for the second, the company said. It expects to begin deliveries of PEAR in 2024.
The PEAR, Fisker said, will be produced in Ohio, with a minimum initial production of 250,000 units per year.
"We are opening up reservations for PEAR following continued demand," said Henrik Fisker, CEO of the company.
The company also reiterated that production of its Ocean SUV will start as per schedule in Nov. 2022.
Related Link: Tesla Vs. Rivian Vs. Lucid Vs. Fisker Vs. Lordstown Vs. Canoo: How BofA Says The EV Makers Stack Up
Why It's Important: The EV industry is getting crowded, with numerous products from both pureplay EV makers and legacy makers lined up for release in the coming years. Sensing the opportunity, automakers have committed a combined $515 billion of spending on EV manufacturing and battery technology over the next five to 10 years, Reuters reported.
Fisker has to successfully navigate through the commercialization of its Ocean SUV and execute on its plans to penetrate the EV market and make a name for itself. The new model could help the company cater to a niche audience, which is looking for affordable EVs.
Fisker shares were trading up 4.03% to $12.12 on Tuesday morning.
Photo: Courtesy of fiskerinc.com
